Beijing: China's e-commerce logistics index peaked at 112.0 points in July, marking an increase of 0.2 points from the previous month. This growth reflects the effectiveness of government strategies aimed at enhancing domestic demand, as revealed by industry data.
According to Emirates News Agency, the China Federation of Logistics and Purchasing (CFLP) disclosed that the sub-index for gross business revenues in the sector climbed by 0.1 point month-on-month to 130.9 points. This performance, achieved during an off-peak season, signifies a robust rebound in business volume. He Hui, Chief Economist at the CFLP, highlighted that the recovery in transaction volume has improved the load utilisation rate index and simultaneously reduced logistics costs.
The Chinese government's trade-in program, launched last year, has stimulated domestic consumption growth and prompted significant industrial transformation. In July, the National Development and Reform Commission announced the allocation of 138 billion yuan in central government funds for distribution in the third and fourth quarters to support local governments in implementing the trade-in program.
Consumer enthusiasm, bolstered by these policies, has surged, with a summer consumption wave driving online sales. He noted that extreme summer weather has boosted sales in categories such as medical products, sun protection creams, and off-season apparel. Additionally, educational materials and training courses themed around summer vacations have seen substantial growth.
Cai Wei, Chief Strategy Officer at KPMG China Advisory, stated that policies to stabilize employment and boost consumption are yielding results, expanding service and new types of consumption. This positions China's consumption as a key driver for economic growth. The trade-in policy is increasingly guiding green and intelligent consumption, with rapid growth in new energy vehicles, energy-saving appliances, and smart home devices.
Moreover, the emotion-driven economy is fostering new consumption categories like light luxury, trendy toys, and fitness products, and facilitating rapid growth in gold and silver jewelry, as well as sports and entertainment goods. China's retail sales of consumer goods rose by 5 percent year-on-year in the first half of the year, while online retail sales increased by 8.5 percent, as per official data.